DOW Daily and 5-day pattern
SPI Weekly and 5-day pattern 16:10pm
SPI opens below 4062 and test Resistance early sending the SPI down into 4004.
Once above 4004 after 2.50pm the expectation that any possible reversal was going to send price back into the 50% level @ 4092.
Weekly Report tomorrow
S&P Weekly and 5-day pattern
Wednesday broke support, but the ideal pattern on Thursday was to have a slight rise upwards into the 5-day 50% level and trade down into the lows.
As pointed out in the report, a move down into support on Thursday, which ended up much further than expected on the day, but not in this Month.
Expectation of a continuation down into November lows
SPI 16:20Yesterday completed the reversal back into the November 50% levels, and the first sign of a reversal is a break of the 5-day 50% level.
A bullish day would have bounced off 4208 and moved back above towards 4263 and higher.
An unwinding pattern of any reversal is how price reacts to the 5-day 50% level, and that wasn't a good sign today.
As long as the SPI remains above 4173 tomorrow then this weekly pattern will consolidate.
Below 4173 tomorrow, and things are starting to unwind.
At this stage price didn't react as if it was bullish, but doesn't mean it can't go higher tomorrow.
Note:- As previously stated, a close below 4315 this week and I'd be leaning to more weakness next week :- higher Weekly open and selling down from the monthly 50% level
SPI Monthly and 5-day pattern
Early sell down from 4329, but didn't reach 4263...
As mentioned in the Daily report, I wasn't expecting any further weakness on Wednesday, and if US markets continue higher on Wednesday, as they look like they will the SPI will continue following the 5-day pattern higher:- 4484
SPI Weekly and 5-day pattern
SPI trading above the Weekly 50% level, and a breakout above Monday's highs @ 4153 pushing the market higher, helped by the Reserve bank cut in % rates after 14:30.
There was an early push down below 4153 of 44 points, and then a higher move back into the Monthly midpoints late in the day.
But it makes it difficult to make generalisations about trading either side of a certain levels:- 4153
SPI spiral filter
But when price moves from below the filter to above the filter, then the trend should be easily managed, and allows the trader to minimise risk and maximise profit on directional moves.
S&P Weekly and 5-day pattern
First day of the stalling pattern on US markets.....
SPI Weekly and 5-day pattern
Last Week US markets 'hooked' above the Weekly 50% level and continued higher into Friday, and today on the SPI was the first confirming pattern of a reversal with a cross over of the Weekly 50% level @ 4086.
Today's rally has gone straight into the monthly balance point @ 4215 and stalled.
This levels becomes a critical level in any trend guide for November, but with today's breakout of the 5-day high, this often sees higher prices in the coming days.
At this stage price looks like it will continue towards 4315...
However the first sign of weakness will be price trading back below the Weekly 50% level, and then below the 5-day 50%.
The rest of this week should be defined by Monday's high @ 4153
And this will depend largely on US markets....
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